29 Mar Financial Ratio Analysis
Prepare a comparison of your firm to 2 other firms being studied in the class, on the following ratios. Also compare your firm to itself for each of the last 3 years (2 additional years beyond your current number).
Profitability Ratios
Gross Margin, Operating Margin, Net Margin
Liquidity Ratios
Current Ratio, Quick Ratio
Working Capital Ratios
Inventory Turnover, a discussion of why A/R turnover & A/P turnover is meaningful in this industry
Interest Coverage Ratios
TIE or EBIT/Interest, EBITDA/Interest. A discussion of why the second formula might be more meaningful.
Leverage Ratios
Debt/Equity, Debt/Capital, Debt to Enterprise Value. Discuss the meanings of each, and which you believe to be the most important and why.
Valuation Ratios
P/E, Price/Book, Enterprise Value to EBIT
Use APA style, and cite your references.
